A will helps to plan for the future. Even simple estates benefit from having a will, and this need for Estate Planning is magnified with larger estates.
But certain kinds of property or assets are not covered in a will. These are known as nonprobate property. Ownership transfers to someone living when you die.
Rights of survivorship guarantee that real estate or other assets owned jointly pass to the surviving owner upon your death, without going through Probate. Another example might be financial products, such as an IRA or insurance policy, which have a named beneficiary.
Types of Ownership
Nonprobate property can be listed in three ways:
1. Assets owned jointly with rights of survivorship, such as with your spouse or others. This can include stocks and bonds, bank and investment accounts, real estate, and interests related to business.
2. Assets you and your spouse own jointly as tenants by the entirety. Some states recognize this special type of joint property ownership involving husband and wife with rights of survivorship.
3. Assets owned in a Revocable Living Trust.
How you structure ownership during your lifetime will affect others upon your death. Unsworth LaPlante, PLLC in Vermont can help you with all of these issues.